Online Taxes & VAT Basic

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Online Taxes & VATOnline Taxes and VAT BasicCorporate Income Tax

Online Taxes & VAT Basic

1. Introduction

For most countries in the world, taxation is the foremost important source of revenue. Taxes can be described as compulsory, unrequited payments by private individuals or companies to their general government. They are levied in order to cover the collective expenses of the general government and are based on a system of legislative rules. Sometimes, taxes are referred to as duties, charges, or levies. However, their mere name is not decisive: the material definition as described above is wide enough to cover them all.
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2. Corporate Income Tax

Most countries in the world have some form of Corporate Income Tax (“CIT”). CIT systems differ per country, even within the EU. A CIT is a tax levied on the net profits (gross income minus allowable tax reliefs) of enterprises. It usually also covers taxes levied on the capital gains of companies.
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3. Payroll Tax

Payroll taxes are taxes paid by employers, employees or the self-employed, either as a proportion of payroll or as a fixed amount per person, and that do not confer entitlement to social benefits. Often, compulsory social security contributions paid to general government are also treated as payroll taxes.
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4. Value-Added Tax, General Sales Tax and Goods and Services Tax

Many countries in the world have implemented some form of consumption tax. Consumption taxes may be levied on a limited number of goods and/or services (such as excise duties) or on all goods and services. The latter consumption taxes are also referred to as “goods and services taxes”.
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5. Customs Duties

ustoms duties are typically levied on the importation of goods. Normally, the person who actually imports the goods (“the importer of record”) is the person who must pay the customs duties.
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6. Other Key Taxes

Globally, a vast number of other types of taxes is levied. Looking at global taxation, it is worth mentioning that many countries apply taxes on the use, ownership or transfer of property (property taxes).
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7. Latest trends and developments

On a global level, there is a general trend of a shift from direct taxation to indirect taxation. At the same time, it is clear that governments are struggling with the taxation of ecommerce. Tax systems, and particularly international taxation arrangements, struggle to keep pace with digitization, globalization and market liberalization.
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Up - Next

Bertjan Janzen
Tax Partner
Tim Kok
Senior Manager Indirect Taxes
Ad van Doesum
VAT Adviser / Professor
PwC / Universiteit Maastricht

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